Use case. Payment method.

vandresvandres VenezuelaMember Posts: 6
edited October 2015 in Smart Contracts and Dapps
Hello folks.
I want to know if it is possible to build the following kind of service within an ecommerce Ðapp.
The idea is to give users the advantages of smart contracts usage without passing through the "cryptocurrencies world" learning process.

That could be possible if the user fund their account with fiat money and then, "exchange it" for the same amount of colored coins in representation of the fiat money they deposited (I'm sure it's called IOU tokens). Now, when they pay with the tokens, the smart contract take them into the "item" account (the smart contract created that account at the publishing moment) and will only sent them to the seller when (for example) the tracking number get the delivered status. If that doesn't happen after a fixed amount of days, the smart contract will sent back the tokens to the buyer account. If the tracking number is changed to delivered status, the smart contract send the tokens to the seller account. The seller could now exchange them for the same amount of fiat money.

I'll appreciate your help telling me if at a dev level, it is or not doable.
Besides, I don't know if the "ecommerce company" will pass through some exchange regulatory process, due the nature of the colored coins been crypto assets more than crypto currencies.. I'm obviously not a developer, but could try (and be really happy) to build some kind of non lucrative project that give the people this service.

Sorry if my english is a little confused, it's not my mother language.


  • miohtamamiohtama Member Posts: 7
    Somebody must hold the fiat currency on a bank account somewhere. Let's say it is a Bitcoin exchange.

    For example, Ripple offers way to trade "bitstampUSD", US dollars hold in Bitstamp.

    Bitstamp takes the risk of fraudulent wire transfers. Merchant must be able to withdraw Bitstamp USD if they want to cash out.
  • vandresvandres VenezuelaMember Posts: 6
    Thanks @miohtama.
    So, for the ecommerce example there is the need of a company where users deposit their fiat money and later transfer them to the app account, where they execute the exchange for IOU tokens.
    Or does the exchange must take place at the getaway account?

    Then, can the smart contracts be developed to create an account that hold the payment until certain conditions meet?
  • miohtamamiohtama Member Posts: 7
    Token exchange takes place between addresses. The redeem of tokens must happen at the gateway who does KYC.

    Also smart contracts can be made to react to any condition. If the condition exists outside Ethereum blockchain e.g. in real-world, then you need to create an oracle which feeds this data into Ethereum blockchain. An example would be an oracle which gives out weather data. The oracle would have known smart contract address and methods to query the latest data.
  • vandresvandres VenezuelaMember Posts: 6
    Thank you very much @miohtama. Your help has been very useful to me. B)
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